Fourth Bi-monthly Monetary Policy Statement, 2015-16 By Dr. Raghuram G. Rajan, Governor, RBI - Sept 29, 2015 - Full Text

Part A: Monetary Policy

Monetary and Liquidity Measures

On the basis of an assessment of the current and evolving macroeconomic situation, it has been decided to: reduce the policy repo rate under the liquidity adjustment facility (LAF) by 50 basis points from 7.25 per cent to 6.75 per cent with immediate effect; keep the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0 per cent of net demand and time liability (NDTL); continue to provide liquidity under overnight repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to 0.75 per cent of NDTL of the banking system through auctions; and continue with daily variable rate repos and reverse repos to smooth liquidity. Consequently, the reverse repo rate under the LAF stands adjusted to 5.75 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 7.75 per cent.



Assessment ... Read more

Policy Stance and Rationale ... Read more



Part B: Developmental and Regulatory Measures This part of the Statement reviews the Reserve Bank’s measures to strengthen the monetary policy framework, make banking structure and practices more efficient, broaden and deepen financial markets, deal with stress in corporate and financial assets, and extend the reach of financial services to all.

I. Monetary Policy Framework

II. Banking Structure ... Read more

III. Financial Markets ... Read more

IV. Currency Management... Read more

The fifth bi-monthly monetary policy statement will be announced on December 1, 2015; and the sixth bi-monthly monetary policy statement on February 2, 2016.

RBI Monetary and Credit Policies (1999-2016) - Notifications, Press Releases, Reports - Click here